A council carrying more than £620 million of borrowing has seen its debt pile rise by nearly £35 million in a year, figures have revealed.
The latest accounts for Eastleigh Borough Council, obtained by the Local Democracy Reporting Service, show that total borrowing stood at £620.1 million as of March 31, 2026.
This is an increase compared to the £585.3 million recorded at the same point last year.
The latest total includes £280.1 million in short-term borrowing – loans that must be repaid or refinanced within the coming year – and £340 million in longer-term loans.
The council paid £13.2 million in external interest during 2025/26, which is equivalent to more than £36,000 a day.
The figures were obtained from the council’s 2025/26 accounts, which were made available for public inspection under the statutory audit process.
Much of the pressure is linked to the authority’s investment and development programme, including the major One Horton Heath housing scheme, which has yet to sell a single home.
But the council said its borrowing is managed under a formal treasury strategy, with the authority expecting assets and future income to help meet the associated costs.
Paul Holmes, Conservative MP for Hamble Valley, said he has long been “very concerned” about the debt accrued at the Liberal Democrat-run council.
He said services are cut to “fund vanity housing projects such as One Horton Heath”.
Mr Holmes, who was the former Eastleigh MP, said: “The Conservative Government put them on notice to reduce their debt, which was cancelled by Labour.
“When the council is abolished and formed into a new council, that debt will still exist, and residents are the ones who will have to pay.”
The council was previously placed under a government Best Value Notice over concerns about its borrowing and governance arrangements, with ministers calling for its overall debt to be reduced and managed.
The notice, issued in December 2023, was not renewed a year later.
According to the council, borrowing is managed corporately, meaning that individual loans are not normally tied to specific schemes within its accounts.
However, the council said one £90 million loan was directly linked to One Horton Heath.
The PWLB loan was taken out in 2017, runs for 50 years and carries an interest rate of 2.3 per cent.
PWLB loans are government loans available to local authorities to support capital spending. The council will pay interest over the 50-year term and must ultimately repay, or refinance, the £90 million borrowing.
Separately, One Horton Heath alone was linked to £184 million of council borrowing as of January 2026, according to the authority’s external auditors.
The council has forecast interest costs of £54.6m during construction, followed by a further £119.8 million while it owns and lets homes – a potential total of £174.4 million.
It said the projected rental income will cover borrowing costs, maintenance and repairs, loan repayments and contributions to reserves.
Cllr Keith House, leader of Eastleigh Borough Council, was approached for a comment.
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